‘Not too hot, not too cold’: July jobs report reactions

Here are reactions to Friday’s jobs report, which showed the economy added 209,000 jobs in July. The unemployment rate rose to 6.2% from 6.1% as more people entered the labor force in search of work. Read more from MarketWatch about the report.

“Not what the bears wanted to see. Payroll jobs up 209k with a 15k net increase to the prior reports. The jobless rate also rose to 6.2% from 6.1% right after the Fed shifted away from joblessness to a range of labor market indicators. Additionally, the hourly earnings number was flat and the index of aggregate hours worked was up just 0.2%. The aggregate hours worked in manufacturing fell 0.2%. The net is that the economy is growing at or slightly below trend on average. There is no reason for the market to move out of its trend.” — Steven Ricchiuto, Chief Economist, Mizuho Securities USA

“This was a good number for equity market investors. After a labor cost scare with yesterday’s ECI report, July’s payroll report showed solid employment growth but upward pressure on the unemployment rate as the labor force participation rate (LFPR) increased. Average hourly earnings were flat. As a result, there is limited pressure on the Fed to accelerate the timing of the first rate increase after today’s report.” — Neil Dutta, Renaissance Macro.

“In short, the trend in employment growth remains more than strong enough for the unemployment rate to keep trending down, even though the rate rose a tenth this month.” — Jim O’Sullivan, chief U.S. economist, High Frequency Economics.

“Today’s report shows that our economy continues to strengthen. However, there are still far too many middle class Nevadans and Americans struggling to find a job and make ends meet…When we return in September, Senate Democrats stand ready to pass legislation creating jobs, cutting taxes for businesses and middle class families, renewing the Export-Import Bank, and extending the Internet Tax Freedom Act. It is my hope that Republicans will put politics aside and join us in acting on critical legislation that ensures a fair shot for all Americans.” — Senate Majority Leader Harry Reid, Democrat of Nevada.